India Brand Equity Foundation (IBEF) has said that India’s e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. Grocery and fashion apparels are likely to be the key drivers for the growth.
This industry is expected to grow to US $ 200 billion by 2026 from US $ 38.5 billion as of 2017.
Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration. As of September 2020, the number of internet connections in India has significantly increased to 776.45 million.
It is also pertinent to mention here that the e-commerce industry has been directly impacting MSME in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well.
Myntra, Amazon, Flipkart, TataCliq, Ajio are few of the leading players in India and fashion category is major contributor in their growth.
Niche product segment in apparel sector is also growing like e-commerce as in January 2021, the Khadi and Village Industries Commission (KVIC) had unveiled eKhadiIndia.com, an e-commerce portal, which comprises 50,000 products, ranging from apparel to home décor.
B2B e-commerce platform Udaan is also attracting attraction.